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| Wuhu SNNDA Medical's ShangRing device--Courtesy of Wuhu SNNDA Medical |
China is a hotbed of med tech growth, with local companies competing against foreign devicemakers for their cut of the profits. One Chinese company got a boost in the race, as the World Health Organization (WHO) approved Wuhu SNNDA Medical Treatment Appliance Technology's circumcision device for HIV prevention.
As The Wall Street Journal reports, the WHO signed off on the quality and production of ShangRing, a disposable device made up of two concentric plastic rings that fit over the penis, clamping its foreskin for easy removal. The device could play a key role in reducing HIV transmission, the WHO said in a statement seen by the WSJ, as it doesn't require hospital surgical facilities. ShangRing eliminates bleeding, swelling, inflammation and pain caused by traditional surgical circumcision, and the device has already been used on more than 600,000 males in China and Africa since Wuhu SNNDA Medical was founded in 2006.
The approval is a feather in Wuhu SNNDA Medical's cap as the company competes for a bigger share of China's fast-growing healthcare market. The WHO's "prequalification" lets international organizations know that it's OK to use the product, the WSJ story notes, potentially expanding Wuhu SNNDA Medical's reach for its device in global markets. And the pool for profits in the Chinese healthcare market is set to reach $113 billion in 2020, according to data provided to the WSJ by consultancy firm Bain & Co, presenting a lucrative opportunity for Wuhu SNNDA Medical.
But foreign companies could still face a tough time charting growth in China, as the country lays down stricter regulations to promote local business. The Chinese Health Ministry last year said it would roll out new incentives for its hospitals to use Chinese-made medical devices, countering "unreasonable increases" in healthcare costs while reducing the burden on patients. Local companies are already cashing in on the trend, with devicemakers such as Shanghai's Kinetic Medical and Mindray ($MR) unveiling plans to boost numbers and expand their footprint in the country.
- read the WSJ story (sub. req.)